How do I fix distorted screen and unresponsive display after iPhone update?

if the display is distorted your best option is to arrange a visit to your nearest Apple store, or Apple Genius Bar in countries that have them. See if the screen hardware has failed.

If it failed during the update you have no redress unless you have paid-for AppleCare+

I don't quite understand why your phone is inviting you to apply for Applecare+ if it is an older iphone 14 PM

"How do I fix distorted screen and unresponsive display after iPhone update?: I updated my phone to 26.2 the newest update and no longer have bright colors and parts of my display are distorted. The black areas of my screen are completely pixilated and the distortion shows up in screenshots(which should be impossible). My phone has no visible physical damage. I’ve completely factory reset my phone and done all the simple fixes to no avail. Any ideas?"

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Thank you for the photo.

Distorted Screen After an Update:

Do you have AppleCare on this? Go here to find out: View Coverage - AppleCare & Warranty - Apple. If so, see if Apple will fix this for you. You'd set up a Genius Bar Appointment at your local Apple Store. There, it will be diagnosed, and you'll be provided with your options. IMPORTANT: Be certain to bring along a proof of purchase (i.e. sale receipt or original packaging) and the iPhone, itself, and back up your iPhone to a computer, prior to getting this serviced.

If no Coverage, then one thought would be to back up your iPhone to a computer > Factory Reset this > set up your iPhone, anew. Elsewise, it's a matter of hundreds of dollars for a new screen, if not covered --all is Apple's say.

Take a Screenshot:

See what happens where you go about taking a screenshot, and then viewing it on another device. eMail it to your self, and then open it on another drive. If this image is shown, then it is a software glitch. If the image is not shown, then it is a hardware error, and you need to get this serviced.